I've just looked on my mortgage sourcing system and in principle you could borrow up to 75% of the property value, or £525,000. Once you clear the existing mortgage, you will have £400,000 as a deposit for the new property. I would be very surprised if you could borrow 6 times your income, but I would expect 4 times to be more likely. This would mean a figure of £144,000 + £400,000 deposit, or £544,000 in total. I know this isn't quite enough, but better than nothing.

There is actually a lender that would lend 80% on a buy to let basis, but the interest rate would be considerably higher. However, this would enable you to borrow £560,000, which would leave £435,000 as a deposit. This would then only require a mortgage of £155,000 to meet the target price of £600,000.

?

Right my idea was to take a BTL on the property that I own the rental income is £4000pcm. My new debt will be around £450K

Then with the £300k+ buy the second house as a residential mortgage.O-(

Would be there other solution like BTL on the second property as the last resort...

thx

Maybe not quite as easy as taking rental into consideration:

You will still have the mortgage to pay on the original £125k and most lenders will take a standard assumption of an interest rate at 6% which on interest only basis will equate to a mortgage cost of £625 per month. I am sure that with a £700k property that you could earn more than this on rental. The rental will need to be assessed by an ARLA (Association of Letting Agents) or NAEA (National Association iof Estate Agents) acredited surveyor who will then assess the rental value of your property. it should also be mentioned that no lender will give you 6 times your income anymore, if your credit is squeaky clean then you may be able to get 5x income but no more.

Some lenders may even go so far as to say that as you do not yet earn rental that you cannot count any future rental as income towards an application but they may allow you to write off your existing mortgage costs through potential rental but with 5x income then you will most likely be looking at a max loan of around £180k.

Sorry to be the bearer of bad news.

Unless you can find another existing and significant source of income (declarable to HMRC) then you will niot be able to raise the £300k you want.

Any lender who would take the rental income into consideration ?

thx

olimpics2012:

With £300K cash How I could get a residentail mortgage up to £350 with a salary of just £36K

Get a second job.

If the second home is going to be rented out, you could look for a lender who would take the rental income into consideration although, as this income is not yet coming in, some lenders will be reluctant to include it in their calculations.

You can have a chat with an independent mortgage adviser but my feeling is that you've done well to find a lender who'll go as high as 6 times earnings.

Hi new on this forum looking for some advise.

I own a property worth £700K+

the mortgage on this house is £125K

I would like to buy a second home:

value £650K

My salary is only £36K

I was planing to mortgage my house as a Buy to Let and raise money to secured the second house with a residential mortgage.

With my credit score wich is good I will get 6 times my salary wich is not good.

I think the max money that I could rise is between £300k to £350K

so not enough

With £300K cash How I could get a residentail mortgage up to £350 with a salary of just £36K

Thanks

Any other solution will be much appreciate